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II. Preparing a Production Budget Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for next four months as follows; Sales
II. Preparing a Production Budget Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for next four months as follows; Sales in Units April 50,000 May 75,000 June 90,000 July 80,000 The company is now in the process of preparing a production budget for the second quarter. Past experiences have shown that end-of-month inventory levels must equal 10% of the following months sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total
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